HEALTH FLEXIBLE SPENDING ACCOUNT (HFSA) – ADDITIONAL CHANGES FOR 2013
2013 brings additional changes to HFSAs that are offered by many employers. As you may recall, not long ago these accounts were forced to discontinue reimbursements on a pre-tax basis for medication purchased “over the counter.”
Beginning in 2013, HFSAs will encounter further limitations. Starting next year, the maximum amount allowed as a salary reduction contribution to an individual employee’s HSFA will be $2,500. The IRS recently issued Notice 2012-40 which contains guidance as to how this new contribution limitation is to be applied. Your account administrator should fill you in on these details later this year.
